ASX 200 falls another 34 points to 6462 (-0.5%) as AUD gets hit in Asian woes. Early strength gives way to Asian selling pressure and AUD under siege. Banks were in the firing line today, with the Big Bank Basket down to $165.51 (-0.8%). MQG continuing to slip slide away, down 2.5%, QBE down 2.2% on Hurricane woes perhaps. ASX up 1.6% despite a scathing RBA report. Healthcare eased, CSL down 0.8% and RHC sliding away again down 0.8%. REITs weak, and industrials also in the doghouse, WES down 2.0%, WOW off 0.4%, and TWE off 1.0%. TLS rallied 2.7% on Optus woes, and Tech eased back with the All-Tech Index falling 1% as CPU dropped 0.6% and XRO fell 3.2%. In resources, some early strength took a beating as BHP rose 0.1%, RIO down 0.4%, and FMG under pressure, off 2.1%. Base metals fell too, S32 down 1.1% and MIN off 3.7%. Lithium stocks were a little depressed, CXO down 7.6%, PLS falling 2.8%, and AKE down 3.1%. Oil and gas eased STO off 1.3% after the PNG LNG deal failed to stir brokers’ excitement, though coal stocks enjoyed another day in the sun after Macquarie upgraded price forecasts. In corporate news, BUB has signed a deal for a Chinese JV, up 5.1%, and TLX has hit a wall in Europe with the withdrawal of Illuccix application, falling 15.4%. In economic news, retail sales remain strong locally, but in Asia market tumbling on the rampant USD. Japan down 1%, HK down 2.5% and China down 1%. 10-year yields pushing ever higher to 4.08%. Dow Futures down 41 points.

Headlines

• Winners: 5EA, CRN, RMS, AX1, WHC, IPL, 360
• Losers: TLX, AGY, CXO, STA, CXL, ARU
• Positive sectors: Energy. TLS.
• Negative sectors: Banks. Healthcare. Industrials.

• High 6517 Low 6433
• Big Bank Basket: Closed at $165.51 (-0.8%).
• All-Tech index: Down 1%.
• Gold: Stronger at $2542 on collapsing dollar.
• Bitcoin: All the gains fading, down to US$18,778
• Aussie Dollar: Smashed to 63.93c.
• 10-Year Yield:  Pushes higher to 4.08%
• Asian markets: Japan down 1%, HK down 2.5%, and China off 1%
• US Futures: Dow down 41 Nasdaq down 105
• European Futures: showing a negative start of around 0.7%.
• Moody’s says unfunded UK tax cuts are credit negative.

Major Movers

• CRN +5.92% WHC +3.91% coal prices get Macquarie upgrade.
• SLR +3.4% substantial holder notice.
• INR +1.71% still some interest in lithium stocks.
• CGS +36.07% ASX price query response. Schultz.
• A11 +10.71% new lithium float picking up interest.
• RDT +11.67% Mt Ida assays and completion of acquisition.
• STX +6.98% independent certification of South Erregulla Kingla discovery
• CNB +5.56% Mt Hope delivers 30m @3% Cu.
• TLX -15.40% EU issues.
• AGY -8.49% profit taking.
• CXL -6.32% sell off continues
• CXO -7.56% broker downgrades and block trade at 105c.
• BRN -5.06% sell off resumes.
• EMV -9.86% biotechs under pressure.
• Speculative Stock of the Day: Qx Resources (QXR) +60.61% good volume as Steve Promnitz appointed MD.

In the News

• Bubs Australia (BUB) has entered into an agreement with Heilongjiang Ubeite Dairy Group (HUG) for the manufacture and distribution of its China-labelled Goat infant formula and ultra-premium Bubs range in China.
• Bega Cheese (BGA) – Gunther Burghardt appointed as CFO, effective 3 October.
• ASX Limited (ASX) – Provided an update at its AGM. Guidance provided with FY22 results is on track – expense growth +10-12%, driven by investment and inflation, and capital expenditures $115-125m.
• Vulcan Energy (VUL) – Reports FY NPAT of (€18.9m) vs consensus of (€11.3m).
• Telix Pharmaceuticals (TLX) – Withdraws marketing authorisation application for Illuccix in Europe.
• Nickel Industries (NIC) – Finalises acquisition of an additional 40% interest in Oracle Nickel Project to increase its interest to 70%.
• Nearmap (NEA) – Certain investors planning to vote against the Thoma Bravo bid, which was for $2.10/share. The AFR reportedly spoke to at least three institutional investors who plan to vote against the proposal, however, are not confident they will have the numbers required to block the bid.

Economic News/Bond Markets

• Retail sales rose by 0.6% MoM in August, and 19.2% compared to August 2021. This is the eighth consecutive month of riding retail sales, indicating interest rate rises are yet to deter spending. Markets are pricing in a 76% chance for another 50bp rate rise at the next RBA meeting.

• Governor Lowe is not best pleased, it seems, with the ASX as it published the RBA review of the ASX performance. Particularly scathing in 73 pages on the delays to the CHESS replacement.

Asian

Asian Markets

• Chinese yuan at weakest since 2008
• Half of HK CV19 exemptions are fake.
• Asian sell-off continues as USD pushes ever higher.
• CALB a Chinese battery supplier for electric vehicle makers, is telling prospective investors it plans to price its Hong Kong initial public offering at the bottom of its marketed range

US and European Headlines

• Investigations being launched in Nord Stream 1 and 2 sabotage. Danish PM says it can’t be ruled out. Anthony Blinken said “There are initial reports indicating that this may be the result of an attack or some kind of sabotage, but these are initial reports and we haven’t confirmed that yet.”
• Russia declares victory in Ukraine elections. No point having elections if you don’t know the result, eh Vlad?
• Apple is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialise.
• IMF urges Truss to back flip on tax cuts in a scathing attack on her new policy. The new economic measures laid out by the U.K. government “will likely increase inequality”, according to the IMF.
• Pound resumes slide. The IMF (what do they know anyway eh Liz?) “does not recommend large and untargeted fiscal packages at this juncture”. Party poopers.
• Moody’s says unfunded tax cuts are credit negative for UK.

And finally………

King Arthur was getting ready for a crusade and called one of his subordinates and said:

– Here is the key to my wife’s chastity belt. If I don’t come back in 10 years, you can use it.

His Majesty passed the wooden bridge and started on the dusty road.

He stopped, turned his horse, and looked at the castle one last time.

Suddenly he saw a subordinate running towards him, shouting:

– Stop! Your Highness! Stop!

Fortunately, I still managed to make it!

The key does not match!

Clarence

XXXX